Clive Palmer wants to drop his defamation lawsuit against LNP Member for Fisher and former Howard minister Mal Brough.
Mr Palmer, in Canberra for his first day of parliament, says he will write to Mr Brough and ask for the truce, on the condition Mr Brough pays his own legal costs.
"It's up to him to agree to it," the newly-elected billionaire MP told AAP.
"My wife said it was in the best interest of the electorate that Mal and I work together to bring about some good things for the Sunshine Coast.
"Mal and I have to serve the people who elected us to bring about social change, regardless of what political parties we come from.
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"We're heading into Christmas, and I'd say the same to Mal, we've got to offer reconciliation."
In September, Mr Palmer lodged a defamation suit against Mr Brough over events relating to the Peter Slipper-James Ashby affair.
Mr Palmer claimed Mr Brough once asked him to fund a campaign aimed at destroying former speaker Mr Slipper's reputation.
He claimed that during a meeting at his Coolum Resort in April 2012, Mr Brough outlined a potential sexual harassment case by Mr Ashby against his former boss Mr Slipper, and sought funding to pursue it.
Mr Brough denied Mr Palmer's allegations and accused the Palmer United Party founder of longstanding inconsistencies around the issue.
Mr Brough has been approached for comment.
